Problems of Small and Medium Business in Germany

The article deals with the problems of small and medium entrepreneurship (SME) in Germany, its role in the country’s economy. It reveals the mechanism of interaction of government structures, political parties, business alliances and the expert community in formulating and carrying out policies aime...

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Autor principal:	B. E. Zaritskiy
Formato:	article
Lenguaje:	EN RU
Publicado:	MGIMO University Press 2020
Materias:	small and medium enterprises framework conditions for business bank credits tax incentive startups venture capital innovations International relations JZ2-6530
Acceso en línea:	https://doaj.org/article/9c3dc45d879a4563bb5966f70040d10e
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spelling	oai:doaj.org-article:9c3dc45d879a4563bb5966f70040d10e2021-11-23T14:50:42ZProblems of Small and Medium Business in Germany2071-81602541-909910.24833/2071-8160-2020-6-75-133-152https://doaj.org/article/9c3dc45d879a4563bb5966f70040d10e2020-12-01T00:00:00Zhttps://www.vestnik.mgimo.ru/jour/article/view/2634https://doaj.org/toc/2071-8160https://doaj.org/toc/2541-9099The article deals with the problems of small and medium entrepreneurship (SME) in Germany, its role in the country’s economy. It reveals the mechanism of interaction of government structures, political parties, business alliances and the expert community in formulating and carrying out policies aimed at supporting SME. It shows that real business conditions in Germany differ substantially from what is usually offered to potential investors in advertising brochures. The Total Early-Stage Entrepreneurial Activity Index (TEA-Quote) puts Germany far behind its competitors. For several consecutive years the number of liquidated small and medium enterprises has been higher than that of newly created ones. Germany’s new generation prefers to seek jobs in big companies or in the civil service. Germany seems to have lost the Gründer spirit. Entrepreneurs complain about the great number of bureaucratic procedures, the growing shortage of skilled workforce, high electricity prices, and difficulties in accessing bank credits for micro and small enterprises. An underdeveloped market of venture capital has been a drag on innovative startups. A successful cluster policy, which gave a new impulse to the development of several territories, has not offset serious shortcomings in the country’s entrepreneurial climate. While not dramatizing the situation, the author considers as mistaken a common point of view found in Russian publications. This point of view holds that framework conditions for business in Germany constitute a near-ideal model, which leads to success as long as it is copied faithfully. The article analyses public discussion in Germany about the problems of SMEs, complains of small and medium business against the authorities. The key provisions of the government strategy to develop small and medium business adopted in 2019 and a cessionary package to mitigate damage of the coronavirus outbreak on the German economy adopted in 2020 are reviewed. The main conclusion of the author is that the German experience should be treated selectively, taking into account overall internal political, economic and social conditions under which the German policy of supporting SMEs is designed. The strengths of this policy lie in its systemic nature and a commitment to align it with industrial, innovative, social, research, and educational policies.B. E. ZaritskiyMGIMO University Pressarticlesmall and medium enterprisesframework conditions for businessbank creditstax incentivestartupsventure capitalinnovationsInternational relationsJZ2-6530ENRUVestnik MGIMO-Universiteta, Vol 13, Iss 6, Pp 133-152 (2020)
institution	DOAJ
collection	DOAJ
language	EN RU
topic	small and medium enterprises framework conditions for business bank credits tax incentive startups venture capital innovations International relations JZ2-6530
spellingShingle	small and medium enterprises framework conditions for business bank credits tax incentive startups venture capital innovations International relations JZ2-6530 B. E. Zaritskiy Problems of Small and Medium Business in Germany
description	The article deals with the problems of small and medium entrepreneurship (SME) in Germany, its role in the country’s economy. It reveals the mechanism of interaction of government structures, political parties, business alliances and the expert community in formulating and carrying out policies aimed at supporting SME. It shows that real business conditions in Germany differ substantially from what is usually offered to potential investors in advertising brochures. The Total Early-Stage Entrepreneurial Activity Index (TEA-Quote) puts Germany far behind its competitors. For several consecutive years the number of liquidated small and medium enterprises has been higher than that of newly created ones. Germany’s new generation prefers to seek jobs in big companies or in the civil service. Germany seems to have lost the Gründer spirit. Entrepreneurs complain about the great number of bureaucratic procedures, the growing shortage of skilled workforce, high electricity prices, and difficulties in accessing bank credits for micro and small enterprises. An underdeveloped market of venture capital has been a drag on innovative startups. A successful cluster policy, which gave a new impulse to the development of several territories, has not offset serious shortcomings in the country’s entrepreneurial climate. While not dramatizing the situation, the author considers as mistaken a common point of view found in Russian publications. This point of view holds that framework conditions for business in Germany constitute a near-ideal model, which leads to success as long as it is copied faithfully. The article analyses public discussion in Germany about the problems of SMEs, complains of small and medium business against the authorities. The key provisions of the government strategy to develop small and medium business adopted in 2019 and a cessionary package to mitigate damage of the coronavirus outbreak on the German economy adopted in 2020 are reviewed. The main conclusion of the author is that the German experience should be treated selectively, taking into account overall internal political, economic and social conditions under which the German policy of supporting SMEs is designed. The strengths of this policy lie in its systemic nature and a commitment to align it with industrial, innovative, social, research, and educational policies.
format	article
author	B. E. Zaritskiy
author_facet	B. E. Zaritskiy
author_sort	B. E. Zaritskiy
title	Problems of Small and Medium Business in Germany
title_short	Problems of Small and Medium Business in Germany
title_full	Problems of Small and Medium Business in Germany
title_fullStr	Problems of Small and Medium Business in Germany
title_full_unstemmed	Problems of Small and Medium Business in Germany
title_sort	problems of small and medium business in germany
publisher	MGIMO University Press
publishDate	2020
url	https://doaj.org/article/9c3dc45d879a4563bb5966f70040d10e
work_keys_str_mv	AT bezaritskiy problemsofsmallandmediumbusinessingermany
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Problems of Small and Medium Business in Germany

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